INVESTMENT SECURITIES

9 Months Ended

Sep. 30, 2021

INVESTMENT SECURITIES

INVESTMENT SECURITIES

NOTE D: INVESTMENT SECURITIES

The amortized cost and estimated fair value of investment securities as of September 30, 2021 and December 31, 2020 are as follows:

	September 30, 2021								December 31, 2020
			Gross		Gross						Gross		Gross
	Amortized		Unrealized		Unrealized		Fair		Amortized		Unrealized		Unrealized		Fair
(000’s omitted)	Cost		Gains		Losses		Value		Cost		Gains		Losses		Value
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	$	3,467,053	$	44,279	$	118,072	$	3,393,260	$	2,423,236	$	94,741	$	16,595	$	2,501,382
Obligations of state and political subdivisions		404,531		17,654		220		421,965		451,028		24,632		0		475,660
Government agency mortgage-backed securities		503,548		11,232		4,104		510,676		506,540		16,280		182		522,638
Corporate debt securities		8,000		84		6		8,078		4,499		137		1		4,635
Government agency collateralized mortgage obligations		23,746		647		1		24,392		42,476		1,111		10		43,577
Total available-for-sale portfolio	$	4,406,878	$	73,896	$	122,403	$	4,358,371	$	3,427,779	$	136,901	$	16,788	$	3,547,892
Equity and other Securities:
Equity securities, at fair value	$	251	$	208	$	0	$	459	$	251	$	194	$	0	$	445
Federal Home Loan Bank common stock		7,251		0		0		7,251		7,468		0		0		7,468
Federal Reserve Bank common stock		33,916		0		0		33,916		33,916		0		0		33,916
Other equity securities, at adjusted cost		2,651		750		0		3,401		4,876		750		0		5,626
Total equity and other securities	$	44,069	$	958	$	0	$	45,027	$	46,511	$	944	$	0	$	47,455

A summary of investment securities that have been in a continuous unrealized loss position is as follows:

As of September 30, 2021

	Less than 12 Months					12 Months or Longer					Total
				Gross					Gross					Gross
		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(000’s omitted)	#	Value		Losses		#	Value		Losses		#	Value		Losses
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	38	$	1,223,230	$	41,243	8	$	579,793	$	76,829	46	$	1,803,023	$	118,072
Obligations of state and political subdivisions	21		16,608		220	0		0		0	21		16,608		220
Government agency mortgage-backed securities	117		169,915		3,528	20		18,069		576	137		187,984		4,104
Corporate debt securities	1		4,994		6	0		0		0	1		4,994		6
Government agency collateralized mortgage obligations	5		1,088		1	1		73		0	6		1,161		1
Total available-for-sale investment portfolio	182	$	1,415,835	$	44,998	29	$	597,935	$	77,405	211	$	2,013,770	$	122,403

As of December 31, 2020

	Less than 12 Months					12 Months or Longer					Total
				Gross					Gross					Gross
		Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
(000’s omitted)	#	Value		Losses		#	Value		Losses		#	Value		Losses
Available-for-Sale Portfolio:
U.S. Treasury and agency securities	13	$	831,015	$	16,595	0	$	0	$	0	13	$	831,015	$	16,595
Obligations of state and political subdivisions	1		358		0	0		0		0	1		358		0
Government agency mortgage-backed securities	89		75,992		182	2		14		0	91		76,006		182
Corporate debt securities	1		1,001		1	0		0		0	1		1,001		1
Government agency collateralized mortgage obligations	13		5,246		10	1		0		0	14		5,246		10
Total available-for-sale investment portfolio	117	$	913,612	$	16,788	3	$	14	$	0	120	$	913,626	$	16,788

The unrealized losses reported pertaining to securities issued by the U.S. government and its sponsored entities include treasuries, agencies, and mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, which are currently rated AAA by Moody’s Investor Services, AA+ by Standard & Poor’s and are guaranteed by the U.S. government. The majority of the obligations of state and political subdivisions and corporations carry a credit rating of A or better. Additionally, a portion of the obligations of state and political subdivisions carry a secondary level of credit enhancement. The Company does not intend to sell these securities, nor is it more likely than not that the Company will be required to sell these securities prior to recovery of the amortized cost. Timely principal and interest payments continue to be made on the securities. The unrealized losses in the portfolios are primarily attributable to changes in interest rates. As such, management does not believe any individual unrealized loss as of September 30, 2021 represents credit losses and no unrealized losses have been recognized into credit loss expense. Accordingly, there is no allowance for credit losses on the Company’s available-for-sale portfolio as of September 30, 2021. Accrued interest receivable on available-for-sale debt securities, included in accrued interest and fees receivable on the consolidated statements of condition, totaled $12.5 million at September 30, 2021 and is excluded from the estimate of credit losses.

The amortized cost and estimated fair value of debt securities at September 30, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date are shown separately.

	Available-for-Sale
	Amortized		Fair
(000’s omitted)	Cost		Value
Due in one year or less	$	187,457	$	189,642
Due after one through five years		693,642		715,779
Due after five years through ten years		1,506,410		1,515,582
Due after ten years		1,492,075		1,402,300
Subtotal		3,879,584		3,823,303
Government agency mortgage-backed securities		503,548		510,676
Government agency collateralized mortgage obligations		23,746		24,392
Total	$	4,406,878	$	4,358,371

Investment securities with a carrying value of $2.48 billion and $2.03 billion at September 30, 2021 and December 31, 2020, respectively, were pledged to collateralize certain deposits and borrowings. Securities pledged to collateralize certain deposits and borrowings included $475.0 million and $473.4 million of U.S. Treasury securities that were pledged as collateral for securities sold under agreement to repurchase at September 30, 2021 and December 31, 2020, respectively. All securities sold under agreement to repurchase as of September 30, 2021 and December 31, 2020 have an overnight and continuous maturity.